If you’re considering the purchase of a home with a VA insured mortgage, there are plenty of unanswered questions, but the home buying process itself is also a bit of a mystery to some first-time borrowers.

There’s no one “right” way to buy a home, but there is a set of steps that can be followed which will save much time along the way.

Your financial situation is one of the first things to consider before actually starting your house hunt. It’s a good idea to do some research on the cost of homes in the area where you want to live, get an idea of typical house payments in your price range, and begin making financial plans for when the purchase is a reality. VA loan and real estate experts agree, the earlier you start planning for this major purchase, the better. At least 12 months ahead of time is ideal.

The house hunting process can be time-consuming. Should you wait until a full year has passed before looking for a new home? Yes and now. It’s a very good step to begin exploring the market before your financial prep period is over, since you may need to invest a bit more time to find a home that’s just right for you.

Some turn to real estate agents for help here, and this can help you cut down the amount of time spent looking at properties that don’t truly meet your needs. But an agent is not mandatory–you can easily search for homes online, in your local paper’s real estate section and elsewhere.

While searching for a home, you should also be looking for a lender that participates in the VA home loan program. Not all banks participate, and not all financial institutions offer the most competitive rates, so shopping around for one early is a very good idea.

Once you’ve found a lender, it’s a good time to apply for your VA loan Certificate of Eligibility if you don’t have one already. The loan officer at your chosen bank can help you do this online in many cases.

Once you’ve finally narrowed your search, eliminated the properties that aren’t “the one” and have found a place you want to make a serious offer, then it’s time to make that offer and see what your seller is willing to agree to. If you and the seller decide the transaction is right, you’ll need to sign a purchase and sales agreement.

This is the moment where you actually become legally bound in the house hunting process and such documents should either contain or be amended to contain a VA option clause which states something along these lines as suggested by the VA official site:

“It is expressly agreed that, notwithstanding any other provisions of this contract, the purchaser shall not incur any penalty by forfeiture of earnest money or otherwise of be obligated to complete the purchase of the property described herein, if the contract purchase price or cost exceeds the reasonable value of the property established by the Department of Veterans Affairs. The purchaser shall, however, have the privilege and option of proceeding with the consummation of this contract without regard to the amount of the reasonable value established by the Department of Veterans Affairs.”

The VA loan official site (www.va.gov) also advises, “You may also want the agreement to allow you to “escape” from the contract without penalty if you can’t get a VA loan.”

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